By Amy Legate-Wolfe at The Motley Fool Canada
Canada’s telecom market still runs like a tight three-player club, with BCE, Rogers (TSX:RCI.B), and TELUS (TSX:T) controlling most of the action. That can make the sector appealing, because scale, sticky customers, and recurring bills don’t go out of style. But if I’m skipping BCE after its recent volatility and focusing on just TELUS stock and Rogers, I’d lean toward Rogers today. TELUS stock has the bigger yield, but Rogers looks stronger on valuation, balance-sheet progress, and near-term execution.
T
TELUS is still an easy business to like on paper. It has wireless, internet, and TV operations across Canada, plus healthcare and digital-services businesses that give it more growth angles than a plain telecom. Over the last year, management also pushed harder into artificial intelligence (AI) and software by moving to buy the remaining stake in Telus Digital for about $539 million. That gave investors another reminder that Telus wants to be seen as more than a phone and cable company.
The issue is that TELUS stock still asks investors for patience. In December 2025, TELUS stock paused its dividend growth program until the share price better reflects its growth prospects, and it also moved to step down its discounted DRIP. That was a practical choice, but it also signalled that management knows the market has concerns around leverage, capital allocation, and how long it may take for newer businesses to move the needle.
The latest numbers were decent, but not enough to make TELUS stock my top pick today. In fourth-quarter 2025 results, it reported about $5.3 billion in revenue and set a 2026 free cash flow target of roughly $2.45 billion, up about 10%, with revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) both expected to rise 2% to 4%. The stock trades around 25 times earnings and yields roughly 9.3%, which is eye-catching. But that rich yield also tells you the market still sees risk. TELUS stock can work for income investors, yet the turnaround feels like it still needs time.
RCI
Rogers stock looks a bit less exciting at first glance, but that’s exactly why I’d buy it. It runs a simpler investment story right now: wireless, broadband, cable, business services, and a growing sports and media platform. Over the last year, it kept pushing through Shaw integration, improved operating efficiency, and strengthened its sports footprint. Its move to buy Bell’s stake in MLSE was a bold one, but it also deepened control over premium live sports content in a market where bundled content still matters.
Recent news also showed Rogers tightening up the business. Fourth-quarter 2025 results got a lift from media and sports, with revenue helped by Blue Jays playoff momentum and new channel launches. More importantly, Rogers kept bringing debt down faster than expected. After the Shaw deal, that was one of the biggest improvements investors wanted to see, and management delivered.
The valuation is where Rogers stock really starts to stand out. In fourth-quarter 2025, it reported total revenue of $6.2 billion, up 18%, with adjusted EBITDA of $2.7 billion, up 6%. Full-year free cash flow reached $3.4 billion, ahead of guidance, and debt leverage improved to 3.9 times from 4.5 times a year earlier. For 2026, Rogers expects service revenue growth of 3% to 5%, EBITDA growth of 1% to 3%, and free cash flow of $3.3 billion to $3.5 billion. Meanwhile, the stock trades at only about 4 times trailing earnings and yields roughly 3.7% at writing.
Bottom line
If I had to pick one Canadian telecom stock to buy today, I’d go with Rogers stock. TELUS stock still has appeal, especially for yield hunters, but Rogers stock looks like the cleaner bet right now. Plus, both offer dividends.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| T | $18.24 | 383 | $1.67 | $639.61 | Quarterly | $6,985.92 |
| RCI.B | $53.87 | 129 | $2.00 | $258.00 | Quarterly | $6,949.23 |
It has improving cash flow, falling leverage, a cheaper valuation, and a business mix that looks more resilient in this stage of the cycle. In a sector that already moves slowly, I’d rather own the telecom giving investors fewer reasons to worry.
The post Telus vs. Rogers: 1 Canadian Telecom Stock I’d Buy Today appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications and TELUS. The Motley Fool has a disclosure policy.
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